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Home / Mutual Funds / News /  Canara Robeco MF to launch Canara Robeco Banking and PSU Debt Fund
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Canara Robeco Mutual Fund has launched Canara Robeco Banking and PSU Debt Fund, an open-ended debt scheme that would predominantly invest in debt instruments of banks, public sector undertakings, public financial institutions, and municipal bonds.

The new fund offer would open for an initial subscription on 29 July and close on 12 August. Being an open-ended debt scheme, it would be open for subscription on an ongoing basis, effective, on or before 29 August,

Canara Robeco Banking and PSU Debt Fund would be an actively managed scheme which would endeavor to invest in high-grade assets, primarily AAA-rated bonds of banks and PSUs. The new fund would aim to manage duration and capture opportunities in the interest rate cycle and mispricing on the yield curve, according to the press release.

Speaking on the occasion, Avnish Jain, head-fixed income and fund manager, said, “we would endeavor to maintain a conservative portfolio through exposure to high credit quality issuers with the low credit risk profile and follow optimal diversification among various issuers within banking & PSU space."

To ensure overall portfolio liquidity for Canara Robeco Banking and PSU Debt Fund, “we would follow a three-pronged approach, contain risks by adhering to issuer/sector limits, track liquidity closely, and manage portfolio concentration & weighted average maturity", Jain added.

The benchmark index of the fund is the CRISIL Banking and PSU Debt Index.

In terms of taxation, when invested for over three years, gains are taxed at 20% after indexation. If held for less than 3 years, the short-term capital gains are taxed at slab rates of the individual.

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